GBP/JPY Forecast August 7, 2017, Technical Analysis

The GBP/JPY pair initially tried to rally during the day on Friday, but found the 145 level to be far too resistive to continue going higher. The market rolled over significantly, and it looks likely that we are going to go testing the 144 handle. A breakdown below the level is massively negative, and should send this market to the 140.50 handle. The market continues to offer selling opportunities, and it’s not until we break above the top of the shooting star from the middle of the session on Friday that I would consider buying. Ultimately, the British pound looks a bit soft anyway, and of course this market tends to be sensitive to risk appetite as well. Keep in mind that the market should continue to see sellers on short-term rallies, and therefore continue to go lower.

Continued bearish pressure

I believe that we will continue to see bearish pressure in this market, and that being the case it’s likely that the rallies will offer plenty of selling opportunities. I believe that the short-term traders will continue to focus on the Bank of England and its disappointing statement, so therefore it’s likely that the market continues to reach to the 144 handle. At that point, breakdown would be very significant as it is not only bearish on the short-term charts, but the long-term charts as well.

GBP/JPY  Video 07.8.17